Goodman Group · ASX:GMG
Goodman — Goodman Property Trust — Shareholder Meeting (August 2017)
38 slides from Goodman's shareholder meeting presentation, Aug 2, 2017
Slide 1: The Mark of Quality - Annual Meeting 2017
THE MARK OF QUALITY G O ODMAN P R O PERTY T R UST A N N UAL MEET I N G 2 0 17 A PORTFOLIO OF THE VERY BEST INDUSTRIAL AND COMMERCIAL PROPERTIES
Slide 2: Meeting Agenda
MEETING AGENDA + Review the strategy and performance of the Trust + Consider and vote on one ordinary resolution − re-appointment of Susan Paterson as an Independent Director 02
Slide 3: Board and Executives
BOARD AND EXECUTIVES + Peter Simmonds Independent Director + Leonie Freeman Independent Director + Phil Pryke Non-executive Director + Susan Paterson Independent Director + Keith Smith Chairman and Independent Director + Andy Eakin Chief Financial Officer + John Dakin Executive Director and Chief Ex
Slide 4: Trustee & Advisors
TRUSTEE & ADVISORS + Trustee, Covenant Trustee Services Limited + Solicitors, Russell McVeagh + Auditor, PricewaterhouseCoopers + Tax advisors, KPMG 04
Slide 5: Meeting Formalities
MEETING FORMALITIES + Notice of meeting properly given + Quorum confirmed + Voting process outlined 05
Slide 6: Overview
2017 OVERVIEW Coda — Savill Link THE MARK 06 OF QUALITY
Slide 7: Building Quality
BUILDING QUALITY + Disciplined investment strategy that is focused on portfolio quality and long-term growth + Asset recycling is funding new development activity + De-leveraging is providing substantial balance sheet capacity 07
Slide 8: Senior Appointment
SENIOR APPOINTMENT + Peter Dufaur, who led GMT’s successful development programme, has left Goodman after 13 years + Michael Gimblett is the new head of development. Mike has 10 years’ experience with Goodman 08
Slide 9: Financial Summary
FINANCIAL SUMMARY Coda — Savill Link THE MARK 09 OF QUALITY
Slide 10: Balance Sheet Strength
BALANCE SHEET STRENGTH improving financial metrics Features of GMT’s strong balance sheet include: + a high quality asset base; + reliable cashflows; + a prudent level of debt; and + secure and diverse debt facilities. 10
Slide 11: Financial Highlights
FINANCIAL $ HIGHLIGHTS 220.5 m 121.7m 114.7m $ $ PROFT BEFORE TAX OPERATING EARNINGS PORTFOLIO REVALUATION BEFORE TAX $ 147.2m 278.8m 30.6% 130.4 cpu NET RENTAL INCOME $ ASSET SALES IN FY17 LOOK THROUGH LOAN TO RATIO VALUE NET TAGIBLE ASSET BACKING 11
Slide 12: 7 Year Fixed Rate Bonds
G O ODMAN B O N DS 7 YEAR FIXED SENIOR RATE BONDS MATURITY MAY 2024 SECURED BBB + ISSUE CREDIT RATING $100million WITH AN INTEREST 12 RATE OF 4.54% P.A.
Slide 13: Earnings Analysis
EARNINGS ANALYSIS 9.51cpu OPERATING EARNINGS BEFORE TAX 7.08 cpu 6.65 cpu CASH EARNINGS CASH DISTRIBUTION 13
Slide 14: FY18 Distribution Guidance
FY18 DISTRIBUTION guidance + FY18 cash distributions maintained at 6.65 cents per unit + Equivalent to a 6.45% after tax yield for 17.5% marginal taxpayer (1) first quarter distribution + Cash distribution of 1.6625 cents per unit + Imputation of 0.3418 cents per unit + Payment date 21 September 201
Slide 15: Property Portfolio
PROPERTY PORTFOLIO Courier Post – Highbrook Business Park THE MARK 15 OF QUALITY
Slide 16: Asset Recycling
OVER THE LAST FIVE YEARS GMT HAS COMPLETED ASSET RECYCLING $ 626.8m OF ASSET SALES AND REINVESTED $ 535.3m 180.3m IN NEW DEVELOPMENT PROJECTS $ IN ACQUISITIONS 16 Millennium Centre — Greenlane
Slide 17: Portfolio Transformation
PORTFOLIO TRANSFORMATION Asset Diversity % + Greater investment in (portfolio value at 31 March 2017) Auckland through development and strategic acquisitions 90% 80% 77.4% + Sales success reducing 70% office weighting 60.0% 60% 50% + Development land just 7% of portfolio value 40% 30% 28.0% 20% 15.6
Slide 18: Property Portfolio Key Figures
PROPERTY 1.0 m 98 % PORTFOLIO SQM RENTABLE AREA PORTFOLIO OCCUPANCY $ 2.4 bn 240 17,000 PROPERTY PORTFOLIO CUSTOMERS WORKFORCE EMPLOYED IN GMT ASSETS 18
Slide 19: Development + Quality Product
DEVELOPMENT-+-QUALITY PRODUCT Development Projects $m + Average $107 million (total project cost including land value) per annum of new project starts over the 160 last five years 148.7 + Yield on cost typically 140 between 6.0% and 7.5% 120 108.8 + 15% to 20% revaluation 98.2 97.0 100 gain on compl
Slide 20: Completed Projects
COMPLETED PROJECTS COMPLETION VALUE NLA Big Chill, Highbrook Business Park November 2016 $38.4m 7,866sqm 20
Slide 21: Completed Projects
COMPLETED PROJECTS COMPLETION VALUE NLA Coda, Savill Link December 2016 $22.6m 4,980sqm 21
Slide 22: Completed Projects
COMPLETED PROJECTS Building 5, Highbrook Business Park Exeed, Highbrook Business Park COMPLETION VALUE NLA COMPLETION VALUE NLA November 2016 $16.4m 3,467sqm March 2017 $8.1m 2,796sqm 22
Slide 23: Completed Projects
COMPLETED PROJECTS Orora, M20 Business Park EDL Fasteners, Highbrook Business Park COMPLETION VALUE NLA COMPLETION VALUE NLA May 2016 $25.2m 11,288sqm January 2017 $12.5m 4,664sqm 23
Slide 24: Highbrook Business Park
HIGHBROOK BUSINESS PARK At almost 50% of GMT’s portfolio value, Highbrook is a significant driver of its financial performance 24
Slide 25: Highbrook Today
HIGHBROOK TODAY + More than 75% complete with over 380,000 sqm of rentable area + 99% occupancy, 5.7 year average lease term and 6 year average building age + 80 customers and over 4,000 staff 25
Slide 26: Highbrook Master Plan
HIGHBROOK MASTER PLAN Estate expected to be more than 90% complete within 3 years 26
Slide 27: Auckland Focused
AUCKLAND FOCUSED + Greatest population and commercial heart of the country + Growing faster than other main centres + New airport, port, rail and road infrastructure projects 27
Slide 28: E-Commerce
E-COMMERCE property impacts + Growth in online sales increasing demand for distribution space + Highlights the importance of locations close to the consumer + Modern warehousing provides operational efficiencies, driving customer demand for prime assets in key markets local market + NZ online spendi
Slide 29: VXV Precinct
VXV PRECINCT 29
Slide 30: Bayleys House Acquisition
62.3m $ ACQUISITION COST BAYLEYS HOUSE 8,106sqm 5 Star BUSINESS SPACE GREEN STAR DESIGN RATING 9 year 100% WEIGHTED AVERAGE OCCUPANCY LEASE TERM 30 Including amortised items, passing yield is 8.8%.
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Slide 33: Business Strategy
BUSINESS STRATEGY portfolio quality + Investing in high quality, Auckland, industrial and business space property + Demographic and technological change support this strategy + Development and transactional activity is enhancing the portfolio sustainable growth + Asset recycling is providing balance
Slide 34: Questions
QUESTIONS Highbrook Crossing — Highbrook Business Park THE MARK 34 OF QUALITY
Slide 35: Formal Business
FORMAL BUSINESS Big Chill — Highbrook Business Park THE MARK 35 OF QUALITY
Slide 36: Board Recommendation + Resolution
BOARD RECOMMENDATION + RESOLUTION formal business The Board considers Susan Paterson to be an Independent Director and unanimously recommend that Unitholders vote in favour of her re-appointment As an ordinary resolution, that, Unitholders approve the re-appointment of Susan Paterson as an Independe
Slide 37: Voting and Close
VOTING AND CLOSE formal business + We will now proceed to a poll and conclude the meeting + The result will be announced to the NZX 37
Slide 38: Thank You
THANK YOU Datacom — VXV Precinct
Goodman Property Trust — Shareholder Meeting (August 2017) on 6ix